12 °c
London
Friday, March 24, 2023
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Zimbabwe wheat supplies Dwindle on foreign-exchange shortage

FurtherAfrica by FurtherAfrica
September 7, 2018
in Africa, Agriculture, Currency, Economy, Finance, Trade, Zimbabwe
Reading Time: 2 mins read
799 60
0
FAO launches Rural Invest in Mozambique
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Zimbabwe is running out of wheat because the central bank won’t provide foreign currency needed to pay for a consignment of the grain, the Grain Millers’ Association of Zimbabwe said.

The country only has 28,028 metric tons of wheat stored, compared with a three-monthly requirement of 114,000 tons, Lynette Veremu, general manager of the association, said in a Sept. 4 letter to millers seen by Bloomberg. The document, stamped ‘Trade Secret,’ was verified by the association.

While the GMAZ has sufficient funds to pay for the wheat, which is stalled at the port of Beira in neighboring Mozambique, a payment of $12.5 million is needed before U.K.-based Holbud Ltd. will release the grain, Veremu said. The central bank won’t provide the funds, using them instead to pay for imports of gasoline and diesel, she said.

“Wheat and fuel are both in Category 1 of the Reserve Bank of Zimbabwe’s foreign-payment remittance priority list,” Veremu said. “Regrettably, fuel gets $21 million per week religiously, but wheat is not getting a paltry $12.45 million for the entire national monthly requirements.”

Cash Shortage

Zimbabwe doesn’t have its own currency, with the government adopting a basket of foreign currencies including the U.S. dollar and South African rand as legal tender in 2009 after hyperinflation rendered the local dollar worthless. The country has faced a cash shortage for at least the past two years, as businesses and individuals moved money offshore and the nation’s import bill increased after exports had collapsed.

Central bank Governor John Mangudya wasn’t available to comment when Bloomberg called him on Thursday, but he earlier told the Harare-based Daily News newspaper that the bank had “arranged letters of credit for the procurement” of 40,000 tons of wheat a month.

Holbud may divert the wheat at Beira to millers in Mozambique and Malawi unless it receives payment, Veremu said. Retailers and bread bakers are already running short of flour in parts of the country, she said.

A person who answered the phone at Holbud’s offices in London said no one was immediately available for comment.

Source: Bloomberg

Related

Tags: Central BankCentral bank GovernorFeaturefuelgeneral manager of the associationGMAZGrain Millers Association of ZimbabweJohn MangudyaLynette VeremuReserve Bank of Zimbabwe’s foreign-payment remittance priority listTrade Secretwheatwheat supplies Dwindlezimbabweзимбабвеزيمبابويジンバブエ津巴布韦
ScanSendShare344Tweet215Share60Pin77Send
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

The Forbes Billionaires’ list: Africa’s richest people 2022
Economy

The 26 most developed financial markets in Africa

by Mark-Anthony Johnson
March 24, 2023
Economy

Africa must address the impact of a strong US dollar on its economies

by The Exchange
March 24, 2023
Mozambique: Exxon Senior VP confirms plans to press ahead with US$30B LNG project
Energy

Exxonmobil wants to update its Mozambique gas project

by Club of Mozambique
March 24, 2023
Economy

Kenya looking for US$1B in investments from UK

by The Exchange
March 24, 2023
Tech

Microsoft announces 4th Africa Developers Competition in Kenya

by TechGist Africa
March 23, 2023
Platform Africa 2023
 
Mozambique eVisa
 
MozParks
 

Translate this page

Read the Latest

The Forbes Billionaires’ list: Africa’s richest people 2022
Economy

The 26 most developed financial markets in Africa

by Mark-Anthony Johnson
March 24, 2023
0

The Absa Group, in association with the Official Monetary and Financial Institutions Forum (OMFIF) think thank, recently released its Absa Africa...

Read more

Africa must address the impact of a strong US dollar on its economies

March 24, 2023
Mozambique: Exxon Senior VP confirms plans to press ahead with US$30B LNG project

Exxonmobil wants to update its Mozambique gas project

March 24, 2023

Kenya looking for US$1B in investments from UK

March 24, 2023

Microsoft announces 4th Africa Developers Competition in Kenya

March 23, 2023

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
O Económico Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 100,046 other subscribers.
FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?